Wednesday, Dec 23, 2009

Housebuilder LEGO pulls Denmark out of Recession!

MAIL: Why Britain is still in recession

"The Bank of England can't keep rates at 0.5 per cent forever, and the Treasury will have to start hiking taxes and slashing public spending to tackle its £178bn deficit. For households, the process of rebuilding savings and paying off debt will take longer than just one quarter. It seems hard to imagine we will see a consumer rebound any time soon". (I think UK house prices will dip accordingly in 2010). Keep buying those LEGO kits, kids!

Posted by alan @ 09:17 PM (1831 views)
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1. jallan said...

Thanks crunchy said... for the link, that was an interesting film. Britain is still in recession because we only have two major industries, finacial services and oil. Britain won't recover until the banks get their capital rebuilt and all the potential bad debts go bad. Then business will be able to borrow money and profit from it, employing people in the process.

Wednesday, December 23, 2009 09:38PM Report Comment

2. mander said...

The only reason we are still in recession is because we did not allow the house prices to fall and become affordable. We are still hopping that people would go crazy again and will buy property at any price but it looks that we are still waiting...

Wednesday, December 23, 2009 09:59PM Report Comment

3. devo said...

"Then business will be able to borrow money and profit from it"

Many businesses that survive this recession will have done so because of their lack of reliance on debt. Will they want to borrow money in the future?

The credit crunch has soured our appetite for debt.

This is a sea-change in sentiment which will have profound implications for the future development of society.

Wednesday, December 23, 2009 10:08PM Report Comment

4. devo said...

For an economy that Gordon Brown and Alistair Darling believed would be 'well placed' to ride out the recession, this is pretty humiliating.

Yet it ought to come as no surprise. Over the past decade and a half Britain became unusually reliant on financial services activity, property speculation and consumer spending to fuel its £1.3trillion economy.

These factors turned from trump card to Achilles heel in the credit crunch.

Wednesday, December 23, 2009 10:42PM Report Comment

5. devo said...

£1.3trillion is a lot of economy to fuel

More QE anyone?

Wednesday, December 23, 2009 10:55PM Report Comment

6. devo said...

if (when?) the house price crash happens, what will it look like?

japanese uncle (god bless him) used to talk about 95% declines, as i recall.

if house prices start to fall at say 5% per month, at what stage would you buy in?

Wednesday, December 23, 2009 11:03PM Report Comment

7. paul said...

I think mander's got it.

It will be at least ten years before credit conditions return to 2007 levels. As soon as policy makers wake up to this, the less good money they will be prepared to throw after bad.

Thursday, December 24, 2009 12:08AM Report Comment

8. devo said...

7. paul said.. It will be at least ten years before credit conditions return to 2007 levels

so what will the economic climate be like in the intervening ten years, paul?

Thursday, December 24, 2009 12:26AM Report Comment

9. devo said...

those with the money have their fingers on the trigger

Thursday, December 24, 2009 12:28AM Report Comment

10. devo said...

Good news everyone! I've found a growth industry!

In 2008, the UK's BAE Systems increased its arms sales to $29.9bn.

Global arms spending rises despite economic woes
World governments spent a record $1.46 trillion on upgrading their armed forces last year despite the economic downturn, with China climbing to second place behind top military spender the United States.

Thursday, December 24, 2009 01:00AM Report Comment

11. crunchy said...

10. devo We must have world order via servitude and bringing in global comunism/socialism whether nations like it or not.

If money can be made in the process then It's all well and good. The new global order has to be funded from somewhere, hence a new

tax system. This new world order appears to be causing total chaos in it's aim for world idealism and peace. If only everybody was

prepared to make all the sacrifices that are neccessary towards that end it might have a chance. : (

I guess not everyone is into totalitarianism on a global scale. I don't like the idea of it myself. The confident Patient founder himself.........

Thursday, December 24, 2009 10:34AM Report Comment

12. Carol said...

Surprising how many people believe this line that Britain is the only country not to come out of recession. The US certainly hasn't -- the growth in US nominal GDP is due solely to short-term government spending, not a true recovery. It's like having your car stop dead in the middle of the road, and some guys come up and push it for you. They start pushing so hard that they're running behind the car. Then they let go, and the car sails off for a few hundred yards -- the recession's over! No, the government just pushed your car (the economy) for a bit, and now it's coasting. It'll stop soon.

Thursday, December 24, 2009 03:04PM Report Comment

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